What Is the Current Value of a Share of McDonalds

question 62

Multiple Choice

What is the current value of a share of McDonalds if its current dividend is $1.50 and dividends are expected to grow at an annual rate of 20 percent for the next 5 years? Assume the investor has a required rate of return of 15 percent and expects to sell the security in 5 years for $72.

• A) $44.31
• B) $35.78
• C) $39.63
• D) $72.00

---

Definitions:

Latinas

Women and girls of Latin American origin or descent, often used to specifically refer to those living in the United States.

Cultural Demands

Expectations or requirements within societies for behaviors, practices, or norms that are strongly influenced by cultural traditions.

Educational Attainment

The highest level of education an individual has completed.

Reproductive Labor

Work often associated with caregiving and housekeeping tasks, traditionally performed by women, that is essential to the maintenance and reproduction of life.